TRUSTED SHOP
‘TRUSTED MARK’ CERTIFICATION SCHEME FOR RETAILERS
IRF Trusted Mark.org is pleased to announce the launch of the first of its kind customer 
centric ‘TRUSTED MARK’ for retailers . The scheme developed with inputs from over 100 global and Indian retail industry stakeholders in accordance with ISO 17067 guidelines will encourage retailers to improve on their practices and systems in operation. The ‘TRUSTED MARK’ seal will assure consumers that retailers will observe their rights through the agreed standards. The key to certification is not only adhering to statutory requirements but also the requirements as mentioned in each of the technical standards. This will help in bringing in transparency so that the consumers know what to expect from their purchase / service from the point of browsing and buying to after-sales.
Certification Bodies accredited for ISO/IEC 17065 by the National Accreditation Board for Certification Bodies (NABCB)- Member International Accreditation Forum – will conduct the audit process for retailers.
IRF Trusted Mark.org aims to undertake a nationwide campaign to establish the ‘TRUSTED MARK’ as the seal for consumer trust – generating consumer awareness and assurance needed to encourage consumers to confidently shop, eat and enjoy products and services of outlets with the ‘TRUSTED MARK.’
Retailers seeking the ‘TRUSTED MARK’ certification can register with IRF Trusted Mark.org by submitting the Application Form duly filled along with the requisite application fees.
Eligible retailers should be operating in a physical brick & mortar space in any of the below mentioned formats.
Boutique
Speciality Store: Apparel/Art & Craft/Auto Accessories/Books & Stationery/Cosmetics/Beverages & Desserts/Confectionery & Biscuits/Consumer Automobiles/Consumer Electronics & Appliances/Electricals & Fittings/Games & Entertainment/Eyewear & Opticals/Fashion Accessories/Food, FMCG & Grocery/Home Furnishing & Decor/Gifts,Toys & Music/Hardware Utilities/Home Tools & Equipment/Kitchenware/Luggage & Travel Accessories/Mobile &Telecom/Pet Products/Shoes & Footwear Accessories/Sportswear & Accessories/Textiles/Uniforms & School Supplies/Watches & Clocks/Any other specific product categories.
Cash & Carry / Wholesale
Convenience Store
Department Store
Experiential Store
Hypermarket/Supermarket
Own Brand Store
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Section A
A.2 a), b), c,) d), e), f) – The compliance officer/designated official should prepare and maintain a list of all compliances done by the organization.
Section B
B.1.1 The policy should also address continual improvement in its operations. There should be a procedure for control of documents and records and retention period of all the documents including customer related documents.
B.2.2 Designated official should have qualification minimum graduate to handle all type of Acts/Laws Licenses/permits/NOCs/Approvals/Registrations etc. Training of staff is also required whenever there is change in scheme and to understand the requirement of customer with the aim of customer satisfaction.
They should have a consumer satisfaction policy based on ISO 10001 and focus of the training should be based on this policy.
B.3.4 The details of owner of the business along with contact number & e-mail etc. should be displayed and provided in all external communication.
B.5.2 The REC policy should be clearly displayed and communicated in all external communication.
B.5.6 The cancellation policy should be clearly displayed and communicated in all external communication.
B.6.2 The Time period for which invoices/customer records are retained by the organization should be clearly communicated.
C.1.2 The system for feedback and complaint cases should be based on ISO 10002. If complaint is not redressed they should follow an external dispute resolution system based on ISO 10003.
A.2 a), b), c,) d), e), f) – The standard is not prescriptive and only gives directions. The standard hence does not insist to maintain a list but insists that system is in place to ensure compliance at all times.
B.1.1 – The standard is asking for SOP / Manual documents at company and outlet level for sustainability of its operations. As indicated earlier, the standard is not prescriptive and sufficient freedom is given to the retailer to develop systems addressing the issue. You will appreciate that in today’s competitive market, sustainability cannot be achieved without continual improvement in its business approach and operations.
B.2.2 – The standard focuses on competence rather than qualification and identifies knowledge, skill and experience parameter. You will appreciate that all ISO standards focus on competence and not educational qualification. The standard adequately addresses smooth customer service which definitely includes understanding customer requirements and customer satisfaction.
– The purpose of the standard is to develop systems for customer trust. ISO 10001 is a guideline and a retailer is free to use this or any other guideline. Even ISO 9001 does not insist on following a specific standard / guideline. We have added ‘Customer Care’ policy SOP / Manual documents at company and outlet level.
B.3.4 – Any external communication will be on its letterhead or website which definitely has the contact details.
B.5.2 – Already addressed in B.5.2.b of the standard.
B.5.6 – Point accepted. It shall be submitted to Technical Committee for review and decision.
B.6.2 – The standard does not address this because it is a legal requirement.
C.1.2 – The standard addresses alternate means for dispute resolution but does not address ISO standard. CB’s contact details will also be made available to customers. Retailer is free to develop and follow any system.
Followings are the comments in regard to criteria requirement document for Food & Grocery retail brands:-
1. Some of the practices look very difficult to comply. For eg. non – usage of plastics bags (B.1.3, it’s not required under law in most states), ensuring that the company ensures suppliers comply with EHS policies (B4.43.e), maintaining complete record of sources of supply till sold(B.4.3), etc.
2. One the compliance side, following regulations specific to food sites should be added:
Annexure A- Food Safety and Standards Act, 2006 and Rule- 2011, APMC Act
Annexure A- Sr. No. 29 –
a. Maintain record of Health fitness certificate of the Food Handlersb. Pest control records.
Annexure A- Sr. No. 30 –
a. Returns under-• FSSAI• ESSCOM• APMC
3. Following best practices specific to Food and Grocery can also be added:• Since hygiene and sanitation related compliances are critical for Food & Grocery retail brands and they also ensure appropriate quality and safe food is being sold to consumers, a separate section may be introduced in the avaluation matrix.• Periodic Internal Audits/Assessments related to compliance with FSSAI laws• Do’s and Don’ts based on Hygiene practices ( handling of products, disposal of waste, use of separate bags for food and non-food products)
Have reviewed all the documents relevant for hypermarket under ‘Trusted Shop’ and happy to see that most of our last suggestions have been incorporated. We are now fully confident that all retailers operating in hypermarket business, if meet the requirements of IRF certification scheme and go for the ‘Trusted Mark’, Indian consumers will be more than willing to shop bulk for their household needs.
We look forward to its formal launch at IRF and large number of retailers registering to apply for the ‘Trusted Mark’.
Mr. Menon,
Thanks for your feedback on Hypermarket under ‘Trusted Shop’.
I am happy to comment on the legal side. Accordingly all the enactmentsand licenses and other compliances are added depending of the style of theformat/Brand.
1. Fashion & Beauty : Drugs and Cosmetics Act needs to be madeapplicable.
2. Food & Grocery : Drugs and Cosmetics Act is not applicable
3. Lifestyle : I think stamping of machines may be applicable under thelegal metrology Act.
4. Hypermarkets : Security Guard Board Act, FSSA Act and LegalMetrology Act is also applicable
I have gone through the fairly comprehensive Criteria Requirements for Hypermarkets, under the category “Trusted Shop –for brick and mortar outlets”. I will look at others subsequently, but on hypermarkets, I have the following suggestions:
1.Under B 2.5 The SOP / Manual / Policy document pertaining to ‘Staff training’ on customer service, refers to training the staff on applicable food related regulations. That’s excellent and I feel that it is also necessary for them to understand that we have a consumer protection law that guarantees consumers, certain basic rights and they have to respect those rights. I would therefore suggest the following addition:
(h) “It is ensured that the staff is educated on the rights of consumers provided under the Consumer Protection Act”.
2.Under B.3.3, Pertaining to ethical communication, some of these important laws need to be added:
The Consumer Protection Act
Insurance Regulatory and Development Authority (Insurance Advertisements and Disclosures) Regulations, 2000
The Competition Act
Bureau of Indian Standards Act
Food Safety and Standards Act
These could also be added in the Annexure
3. Again under B 3.3 , I feel that it is extremely important to ensure that outlets understand the definition of unfair trade practices under the Consumer Protection Act and comply with them. Under the new law on consumer protection that will soon replace the Consumer Protection Act of 1986, there will be considerable emphasis on the consumer’s right to be protected against unfair and restrictive practices and the Consumer Protection authority that will be constituted under the law, will enforce this right. So it would be important for hypermarkets to ensure that all promotional practices comply with the applicable laws pertaining to unfair and restrictive trade practices.
I would therefore suggest this addition:
(q)The brand/outlets ensure that all promotional practices are fair and comply with consumer protection laws pertaining to unfair and restrictive practices.
4.Again under B 5.2 pertaining to Refunds, Exchange and Compensation policy, I do feel that it is necessary to refer to the applicable laws because the new Consumer Protection Act that will replace the existing Act of 1986 is likely to have specific provisions on this issue and the retailer’s policy cannot be in conflict with what is mandated under the law. So the addition could be:
(e)REC policy complies with applicable laws, if any
5. C 1.2 refers to feedback management and dispute resolution system
Here, (a) says “The brand has a system to document feedback and complaint cases and has a complaints resolution procedure-within a definite time frame upon receipt of complaint”
After this, it is important to add that : “And the brand publicizes on its website and at its outlet, the complaint resolution procedure and the time frame fixed , for the benefit of customers”
6. C.2.2. Refers to the outlet’s commitment to safety and security of customers. Here I would like two additions, keeping in mind the fire safety at these outlets
(d) says : “The outlet/s of the brand are equipped with emergency procedures and has a system for incident and security management for all facility and fire safety issues”.
Here it would be appropriate to add “and have all fire fighting equipment in place as required under applicable law”
The other addition would be “The outlets have adequate fire exits to help customers escape in case of a fire and there are prominent signs showing these exits”
Ms. Pushpa Girimaji, it is a privilege to receive expert inputs from a world renowned specialist in consumer law, consumer rights and consumer safety issues like you, You have effectively championed the cause of consumers for over 3 decades now and we hope you will find time to go through all documents. You have rightly chosen the hypermarket format for your initial comments as ultimately this will be the single document for ‘TRUSTED SHOP’ covering retailers across fashion and beauty, lifestyle (Consumer & personal electronics, Home Décor/ Interiors, books, music gifts etc.), Food & grocery and all that sells in hypermarket. We shall suitably incorporate all your suggestions in consultation with other stakeholders.
The area covered is very exhaustive and even if the establishment meets 50% of the criteria this is an achievement and we can definitely help in implementing the rest.
Dear Mr. Gopalakrishnan
Thanks for your appreciating comments.
The checklist is detailed and multifaceted, comprising of various sensitive and important aspects such as Sustainability, Customer Service, HR Practices, Goods / Service Quality, Terms and Conditions of Sales, and Customer Feedback / Privacy / Dispute Resolution, among others. Retail practices around the world have evolved largely and adherence to the Best practices in retail will go a long way in providing consumers in India with best quality of retail experience. Indian retail practices are evolving and needs improvement. Such standards provide a roadmap and benchmark for making this improvement. While, a standard certification would provide assurance for the consumers across locations.
However, given the diverse aspects that are covered under the certification, a clear evaluation mechanism, a trained and experienced team of evaluators, and an objective scoring systems would be required. The evaluation process in itself would be self evolving, even though the best practices of retail are highly evolved. In addition, some areas such as Compliance / Law and Information Technology, are specialised and would require professionals expertise of the respective fields. The evaluation process is extensive, and its cost-benefit trade off for the outlets would play an important role for them to opt for the certification, especially for the Medium and Small sized outlets.
The Indian Retail Forum Certification Scheme is a good initiative and I wish for its success.
Dear Mr. Aneja,
Thanks for your appreciation of the Certification Scheme and valuable inputs. The Certification Scheme has various committees to address key aspects of the scheme ranging from Technical aspect to mediation issues. Focussed Retail committee of the Certification Scheme comprise of key retailers of India representing various retail formats and verticals. As per Certification process the Certification is approved by a Certifying Body (CB) which would conform to ISO standards. These bodies have technical / regulatory / compliance experts on board with expertise to guide, plan, monitor and assess such audits. The CBs have suitable mechanism for carrying out mystery audits and assessment interviews as well.
Nature’s Basket submitted its comments on criteria documents on 13th July 2016.
The rationale for most of my inputs is that trusted shops must be seen as more reliable and trustworthy by all stakeholders – including consumers, government authorities, suppliers, service providers and even current and potential employees.So I have viewed all criteria from the perspective that clauses must strengthen differentiation vis a vis stores that do not stand for the same level of trust either because of their under defined or underwhelming process compliances or customer centricity or lack of regulatory compliances.
Inputs on Some of the specific questions that you asked are as below :
IRF Q. What should be the minimum qualifying score (out of 100) in Regulatory compliance criteria for the applicant to qualify for the scheme? For instance – A minimum score of 50…60…70…80..?
Ans. Minimum score for regulatory compliance should be 70
IRF Q. What should be the respective weightage to be imparted to all 3 broad Criteria segments (out of a total of 100) in reference to your retail format/segment? For instance – Regulatory (wt. 10%) + Practices & systems (wt. 40%) + Customer Relations (wt. 50%)…?
Ans. Regulatory : 20%; Practices and Systems : 40%; Customer Relations : 40%
Suggestions on scoring pattern are as follows:-A – Full conformity with the requirement; Score – 25B – Almost full conformity with the requirement but a small deviation was found; Score – 20C – Just about half of the requirement has been implemented; Score – 12D – Only a small part of the requirement has been implemented; Score – 5E – The requirement has not been implemented; Score – 0
Files in which there are some alterations or suggestions are enclosed
=============Instead of looking at specific aspects like composting, water harvesting, etc etc –specifically for neighbourhood food and grocery stores – we could look at general measures intended to promote a culture of energy conservation / reduction within the business.=========
There are other changes of text appropriation, regarding labour & wages, customer security and food-related suggestions in relevant documents. Please go through them.
Your feedback comments on Trusted shop have been received. We have following key points to share with you:• As per most of experts’ feedback, score of 100 should be mandatory for Regulatory compliance• Weightage and scoring pattern are still under deliberation stages and not finalised yet• Composting, water harvesting, Conservation of electricity and water was found to have limited impact on direct Customer experience hence these criteria have been dropped across all formats• Your other inputs have also been addressed suitably
ON CDIT but applicable for all in brick & mortar
B. Practices and Systems – 5. Terms and conditions of sale (B.5.1 – B.5.6)B.5.2 The brand / outlet/s offers Refunds, Exchange & Compensation (REC) to its customers as and when required
Should add sub clause: THE REC policy should be well communicated to employees at the outlets and all responsible for Refunds, Exchange & Compensation (REC) to its customers.
Mr Taneja,
Thanks for your input. Your suggestion has been incorporated suitably
The feedback comments on Trusted shop Criteria documents were submitted on 13th July 2016
Your feedback comments on Trusted shop have been incorporated suitably
The feedback comments on Regulatory compliance for Trusted shop were submitted on 5th and 11th July 2016
Your feedback comments on Trusted shop and Regulatory compliance have been incorporated suitably
Reliance Footprint submitted its comments on Trusted shop Criteria Requirement document on 29th June 2016
Your feedback comments on Trusted shop have been incorporated suitably
The comments on Trusted shop Criteria document were submitted on 20th June 2016. The comments on scoring and weightage are as follows:-
IRF Q. What should be the minimum qualifying score (out of 100) in Regulatory compliance criteria for the applicant to qualify for the scheme?
Ans. A minimum score of 85 %
IRF Q. What should be the respective weightage to be imparted to all 3 broad Criteria segments (out of a total of 100) in reference to your retail format/segment?
Ans. Regulatory (wt. 25 %) + Practices & systems (wt. 25% + Customer Relations (50%)…?
Suggestion on scoring pattern:-
A – Full conformity with the requirement | Score: 25B – Almost full conformity with the requirement but a small deviation was found |Score: 15C – Only a small part of the requirement has been implemented | Score: 5D – The requirement has not been implemented | Score: 0
Your feedback comments on applicability and non-applicability of criteria for Trusted shop and on specific queries on scoring and weightage have been recorded for suitable action
Below are few recommendations:
Reference note:1. International standards always have a pre-assessment before applying for the main certification. Pre-assessment help them identify gaps for the certification and also a time is recommended to implement the gaps identified. One an audit is failed, there is a recommended waiting period before reapplying for the certification. As we are looking for small scale shops as part of this certification, I believe pre-assessment will certainly be very helpful.2. Scoring Methodology – I think its vague and left open to the discretion of Auditor. This often created confusion. I have seen this during many audits. Please see an example below from a food safety audit. We need clarity clear guideline on scoring.
Question 1: Are all food handling associates washing hands properly and when appropriate?Proper hand washing is one of the most important preventative behaviors in food safety. It is important to train associates on when and how to wash hands and at the same time emphasize the reality of the risk and the potential to cause real harm. In order to promote the desired behavior, it is important the associate make the connection that they have a personal responsibility for the safety of the products they serve.Departments Evaluated: Meat, Fish/Seafood, Grocery (Produce)For this question: Do not ask associates how they wash their hands. The auditor must observe associates only.Score 1 observation per department if there are less than 3 associates in the departmentScore 2 observations per department if there are 4 – 8 associates in the departmentScore 3 observations per department if there are more than 8 associates in the departmento GreenHands are being washed properlyo Entire process takes 20 sec. No need to time the process exactly, simply use as a guide to determine if hand washing was effectiveo Agitation over entire surface of handso Hands dried with a single use disposable paper towelHands are being washed when appropriateo After using the restroom.o After coughing, sneezing, blowing nose, or touching body partso Immediately before preparing foodo After handling chemicalso After touching or taking out garbageo After touching contaminated surfaceso Before putting on or when changing glovesIf production in the fresh area is finished for the day then check that the hand wash station is properly equipped:o Water available at hand wash sink (markets to add in water temperature specific information if needed)o Single use paper towel availableo Garbage can next to sink has used paper towel in ito Soap
3. Scoring Technique – I would recommend we can have different phases of clearance specially to keep small retailers motivated. They would be highly encouraged to see the progress and gaps they need to fill in to get the certification. Also if during re-certification, they don’t fail rather they slip to previous level. Like if they meet 40% criterion, they clear Phase I, Once they reach 70%, they get to Phase II, once they get 90 plus, they get the certification.
Regulatory Compliance – The list of licenses is indicative. As there are few state level/district level license that are not included. License related to Fire safety are not included. License related to weights & measures not included. There are many other which are critical but are missing from the list. Pre-construction/post construction licenses. Additionally, what about obligations which come with the license
Your feedback comments on Trusted shop and Certification scheme in general have been incorporated suitably
Infiniti Retail submitted its comments on Trusted shop Criteria document on 17th June 2016
Your feedback comments on applicability and non-applicability of criteria for Trusted shop have been incorporated suitably
We have perused the template sent by you and have following suggestion to make in addition to what has been suggested in the template. It may be noted that some criteria may be dependent upon product specific for the store/ size of the store/ its location i.e. stand alone/mall etc.
Under Regulatory Compliance Template , it will be advisable to put into buckets i.e. licenses/registration/approvals/permission under one category. Having obtained there are license conditions which every License holder is required to comply with the same and hence Compliance is put in a separate bucket.A)Licenses/Registrationa. License under Contract Labour Actb. Certificate of Registration Principal employerc. Licenses by contractorsd. Occupation Certificate for shop/ Completion Certificate for premisese. Approved as Commercial Premises by local authorityf. Trade License /NOCg. Calibration certificate for weighing scaleh. Repacking License under Legal Metrology Acti. Sexual Harassment at workplace Act, 2013j. Insecticide Licensek. Civil Supply License under Essential Commodities Actl. Fire NOC/Fire Advisory Certificatem. Manufacturing License for Bakeryn. Agricultural Produce Marketing Committee (APMC) licenseo. License under Drugs and Cosmetic Act/ OTC (Over the counter) licensep. Non Veg Licenseq. Valet Parking Licenser. Signage/ Hoardings display permission by local authoritys. Consent letter from pollution Control Board to operate DG Sett. Enrollment under PF Act and ESICu. Import licensev. Warehouse (Distribution Centre) /Repacking Centre (RPC) i Repacking License under Legal Metrologyii Factory License
B. Statutory compliance1. Human Resources (Labour Act)a. No. of Employees Working in Store / Zone as per License issued under Shop & Establishmentb. Nomination Of Person by Principal Employer to be present at the time of wage disbursementc. Exit of Female Employees as per timing of Shop & Establishment Act2. Register / Notice Maintaina. Register – Maternity Benefit Actb. Register – Payment of Bonus Actc. Notice of Change / Opening Under Gratuity Actd. Notice of Person Responsible to receive notice under Gratuity Acte. Register of Employee Attendance under Minimum Wages Act / Shops & Establishment Actf. Register – Wages of Employee under – Minimum Wages Act / Shops & Establishment Actg. Register of Leave and Leave Card Under – Minimum Wages Act / Shops & Establishment Acth. Employee File having – Appointment letter, Wages Slip.i. Register of employee – Under ESICj. Register of Over time / Fine / Damages & Lost / Advance – Under Shops & Establishment Act / Minimum Wage Act / Payment of Wages Actk. Inspector Visit Book – Under Shops & Establishment Act / Minimum Wages Act3. Returns – Submit Under Labor Acta. Annual Return under Shop & Establishment Actb. Annual Return – Maternity Benefit Actc. Annual Return – Minimum Wages Actd. Annual Return – Payment Of Wages Acte. Quarterly Return – Employment Exchange Actf. Annual Return – Payment Of Bonus Actg. Quarterly online Submission under Equal Remuneration Acth. Monthly returns of PF, ESIC and LWF (Labour Welfare Fund) contribution
4. Display- Licenses / Abstract / Noticesa. Display of All Licenses / Certificateb. Abstract of All Labor Actsc. Notice of Weekly Store Closer dayd. Notice of holidays and weekly off of the employeee. Display Notice of not working Child Labor in Shop / Establishment in prescribed Formatf. Display the copy “Sexual Harassment Committee” process of reporting5. Administration (Contractor’s Related)a. Register of Muster Roll – Under Contract Labor Actb. Register of Wages – Under Contract Labor Actc. Register of Over time / Advance / Fine / Damages & Lost – Under Contract Labor Actd. Deposit of Full Amount Provident Fund by Contractor as paid by Pantaloonse. Deposit of Full Amount ESIC by Contractor as paid by Pantaloonsf. Return for Commencement & Completion of work by Principal Employerg. Return by Principal Employer for Contract Labour Employedh. Return by Contractor for Contract Labour EmployedC. Other RequirementsA Vendor code of conduct manualb Vendor registration form (Pre verification for enrolment)c. Observance/ adherence to of MSME guidelines for vendorsd. Employee Code of Conduct Manual
Should you require any clarification ,please let us know
Your feedback comments on Trusted shop and Regulatory compliance have been incorporated suitably
Back to Trusted Document – should be Back to Trusted DocumentsClick should take the visitor to Trusted Documents Page
Declaration A. Regulatory Compliance (A.1 – A.4)The word Declaration still not deleted. Please do the needful